Cal. Code Regs. Tit. 10, § 30.72 - Field of Membership: Application for Eligibility To Add Select Groups
(a) An application
by a California credit union for eligibility to add select groups shall contain
the following information:
(1) A statement
that the credit union has an acceptable rating. The statement shall include the
name of regulator or insurer which gave the acceptable rating, and the date the
acceptable rating was given.
(2) A
statement that there has been no material change in the condition of the credit
union since it received the acceptable rating.
(3) Confirmation that the board of directors
of the credit union has adopted a policy setting forth guidelines for adding
select groups to its field of membership which incorporates, among other
necessary items, the appropriate requirements set forth in Section 30.73. A
copy of the policy shall be included as an exhibit to the
application.
(b)
(1) An application by a California credit
union for eligibility shall be deemed to be approved on the
60th calendar day after the complete application is
filed with the Commissioner, unless the Commissioner (A) earlier decides the
application, (B) requests the applicant to provide additional information, or
(C) extends the period for deciding the application. In no event shall the
Commissioner extend the period for deciding the application beyond the
90th day after the complete application is filed
with the Commissioner.
(2) For
purposes of Paragraph (1) of this Subdivision (b), an application shall be
deemed to be filed with the Commissioner on the date when the application,
substantially in compliance with the requirements of Subdivision (a) of this
Section, is received by the Commissioner.
(3) For purposes of Paragraphs (1) and (2) of
this Subdivision (b), an application shall be considered complete when the
Commissioner has received all of the supplemental information he or she
requests from an applicant regarding the application. The Commissioner shall
notify the applicant in writing of the date on which the Commissioner
determined that the application was deemed complete.
(c) As an administrative standard, the
Commissioner will approve an application by a California credit union for
eligibility if the Commissioner finds both of the following:
(1) That the credit union has an acceptable
rating and that there has been no material change in the credit union since the
acceptable rating was issued.
(2)
That the credit union has adopted the necessary policy to implement the
addition of select groups to the field of membership of the credit
union.
(d)
(1) The Commissioner may, at his or her
discretion, revoke the eligibility of a credit union under this Section and
Section 30.73 if he or she finds any of the following conditions:
(A) Subsequent to the credit union being
granted eligibility, the credit union receives a less than acceptable rating as
a result of an examination of the credit union.
(B) Subsequent to the credit union being
granted eligibility, there is a material change in the condition of the credit
union.
(C) The credit union fails
to adhere to the policy adopted in accordance with this Section.
(2) The eligibility of a credit
union shall automatically be revoked if a credit union is subject to any
enforcement action undertaken by any regulator or insurer of deposits of the
credit union.
(3) There shall be no
right to a hearing with regard to a determination to revoke a credit union's
eligibility pursuant to Subdivision (d)(1) of this Section.
(e) In the event the eligibility
of a credit union is revoked pursuant to Subdivision (d) of this Section, the
credit union is required to file an application for eligibility under this
Section if the credit union desires to regain its status as an eligible credit
union.
Notes
Note: Authority cited: Section 14201, Financial Code. Reference: Sections 14155 and 15451, Financial Code.
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